Arbeitspapier
The Impact of NAFTA on Prices and Competition: Evidence from Mexican Manufacturing Plants
This paper assesses the impact of the North American Free Trade Agreement on Mexican manufacturing plants’ prices and markups. We distinguish between Mexican goods that are exported and those sold domestically, and decompose their prices separately into markups and marginal costs. We then analyze how these components were affected by reductions in Mexican output tariffs, intermediate input tariffs, and U.S. tariffs. We find that declines in these tariffs led to significant reductions in the marginal costs of Mexican products. However, prices of exported goods slightly increased as exporters increased their markups in response to declines in U.S. tariffs.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 7700
- Classification
-
Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Kikkawa, Ayuma Ken
Mei, Yuan
Santamarina, Pablo Robles
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2019
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kikkawa, Ayuma Ken
- Mei, Yuan
- Santamarina, Pablo Robles
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2019
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